The Russell 1000 Energy Managed Portfolio invests in stocks of companies involved in the exploration and production of energy products such as oil, natural gas, and coal.

Allocation discipline

The portfolio targets long U.S Energy equities within the Russell 1000® Index and rebalances quarterly.

Exceptions

Sell decisions are based exclusively upon the quarterly rebalance and reconstitution of the Russell 1000® Equal Weight Energy Index as provided by the Frank Russell Company pursuant to a licensing agreement.

About FTSE Russell

The IBKR Asset Management FTSE-Russell Index Tracking Portfolios are designed to follow certain predefined rules so that the portfolio can track a specified basket of underlying investments, which corresponds to the reference index. These portfolios aim to track the performance of the underlying basket (index), and typically represent a form of passive investing. IBKR Asset Management constructs and manages these portfolios based on data provided pursuant to licensing agreements with FTSE International Limited ("FTSE") and the Frank Russell Company ("Russell"). The goal of these portfolios is to allow investors to track the performance of certain specified portions of the US Stock market as represented by the reference index.

Important Information

Past performance is no guarantee of future results, and all investments, including those in this portfolio, involve the risk of loss, including loss of principal and a reduction in earnings.

To invest in this portfolio, IBKR Asset Management clients must:

Sign an Investment Management Agreement with and become clients of IBKR Asset Management;

Consent to trading with another Interactive Brokers LLC client who is a liquidity provider in order to be able to buy and sell fractions of ETF shares and stocks, which do not trade on the open market. IBKR Asset Management clients may revoke this consent at any time but, if they do, they will no longer be able to invest in this portfolio. (Clients can see these fractional trades with the liquidity provider listed and identified on the periodic activity statements they receive from Interactive Brokers LLC); and

IBKR Asset Management manages this portfolio by trading its own funds in separate firm-owned brokerage account and replicating this trading in the accounts of investing clients as follows:

IBKR Asset Management initially funds and trades a fixed amount of its own funds in a separate brokerage account associated with each portfolio;

IBKR Asset Management replicates the trading in these brokerage accounts in the accounts of clients investing in each specific portfolio in order to implement its replication-based investment process; and

Based on data received from WisdomTree, IBKR Asset Management periodically rebalances these portfolios.

Clients may restrict any of the securities traded in their account, but should note that any restrictions they place on their investments could affect the performance of their account leading it to perform differently, worse or better, than (a) IBKR Asset Management’s account managing the portfolio or (b) other client accounts invested in the same portfolio.

Quarterly rebalances in this portfolio will result in numerous transactions in many or all the ETFs in the portfolio and client accounts invested in this portfolio. Clients will incur transaction costs for any trading in their account (including periodic rebalance trades) such as commissions payable to Interactive Brokers LLC, IBKR Asset Management’s affiliated broker-dealer, which is a conflict of interest. Clients could be required to report some or all of these periodic rebalance trades on their tax forms. Clients should consult an accountant or tax attorney on tax matters as IBKR Asset Management does not provide tax advice or prepare tax documents for its clients. Interactive Brokers LLC provides certain tools to assist you with your tax filings, but these tools may only be able to support a limited number of trades.

There is no guarantee or assurance that the methodology used to create the reference index underlying this portfolio will result in this portfolio or client investments in this portfolio achieving high or even positive returns. The index upon which this portfolio is based may underperform and could lose value while other indices could increase in value. While IBKR Asset Management aims to track the reference index for this portfolio as closely as possible and mimic the performance of each index, it makes no guarantee that it will succeed in doing so, or that it will achieve the same performance for clients as the account managing each portfolio has achieved. Those considering investments in this portfolio should note that there may be similar offerings in the marketplace (i.e., portfolios or investments seeking to track the same index), which may charge lower management fees.

Clients’ investments in this portfolio are made up of whole and fractional holdings of stocks and/or other securities. By investing in this portfolio, clients are not investing in ETFs, mutual funds or the underlying index. Investing clients own the individual whole and fractional shares of the stocks or securities composing the portfolio based on the reference index.

IBKR Asset Management constructs and manages this portfolio based on data obtained pursuant to a licensing agreement with the Frank Russell Company and remits a portion of the management fees charged to clients for investments in this portfolio to Russell.

This portfolio has been developed solely by IBKR Asset Management. This portfolio is not in any way sponsored, endorsed, sold, promoted or recommended by FTSE International Limited (“FTSE”), the Frank Russell Company (“Russell”) or the London Stock Exchange Group companies. FTSE and Russell do not provide any investment advice or recommendation in relation to any index to IBKR Asset Management or its clients. The indices that IBKR Asset Management’s portfolios seek to track are calculated by FTSE and Russell. The index names are trademarks of FTSE and Russell and have been licensed for use by IBKR Asset Management.

Under the governing licensing agreements, FTSE or Russell may alter, amend, terminate or change the indexes, change the composition or method of calculation of any index or the data, suspend or interrupt providing data to IBKR Asset Management and have no obligation to take the needs of IBKR Asset Management or its clients into account when determining, modifying or terminating any of of the indexes. FTSE, Russell and IBKR Asset Management may also terminate the governing licensing agreements upon one month written notice. IBKR Asset Management will notify all affected clients of any such termination as soon as possible to allow them to identify suitable alternative investments on the IBKR Asset Management platform or elsewhere. Those considering investing in this portfolio should bear these limitations in mind when deciding whether to invest in this portfolio which may become unavailable in the future.

IBKR Asset Management’s management of this portfolio and some of the information on this page relies on data from third-party sources, including the third-party providing the model portfolio strategy. While IBKR Asset Management believes that the data it uses in its investment management processes is obtained from reliable sources, it did not audit or validate this data, which may contain errors.

Clients may find additional information on the risks, conflict of interest, applicable brokerage commissions, fractional shares, and limitations on investments and divestments associated with its index-tracking portfolios here and on the Forms and Agreements page (along with IBKR Asset Management’s full disclosures).

This portfolio was launched on IBKR Asset Management on December 12, 2017. On that date, IBKR Asset Management started trading its own funds in a brokerage account trading this strategy. This portfolio was opened to client investments on January 16, 2018.

The actual performance of the manager account displayed on this page is based on the performance of the IBKR Asset Management proprietary account invested using this strategy and is calculated by IBKR Asset Management on a daily time-weighted basis, including cash, dividends and earnings distributions. The actual performance for this portfolio is presented “net of fees” and reflects the deduction of the IBKR Asset Management advisory fee, Interactive Brokers LLC brokerage and other commissions and expenses that a client has to pay if he invests in this portfolio after the launch date.

The performance information displayed on this page is not based on the actual performance of any client accounts. The performance in client accounts may be lower or higher than the IBKR Asset Management’s account performance (displayed on this page) based on a variety of factors, such as trading restrictions imposed by the client (resulting in different account holdings), time of initial investment, amount of investment, frequency and size of cash flows in and out of the client account, applicable brokerage commissions, and different corporate actions. Clients investing in this portfolio may view the actual performance of their investment in this portfolio by logging into their IBKR Asset Management account and reviewing their customized dashboard.

Returns for the reference index corresponding to this portfolio for time periods preceding December 12, 2017 (this portfolio’s launch date) inclusive (gross) of management fees and commissions may be viewed on the index provider’s website. These index returns do not reflect the results of actual trading of investable assets or have any relation to the performance of this portfolio after its December 12, 2017 launch date. An index cannot be invested in directly and index returns are provided for informational and illustrative purposes only. Indexes are unmanaged. Because index returns do not reflect the deduction of any management fees, transaction costs or expenses or relate to the performance of this portfolio, clients should carefully review these index returns and bear in mind that any investments tracking an index, such as those in this portfolio, will be lower than these returns by the amount of management fees, transaction costs and other expenses that they will have to pay for investments in this portfolio. Please refer to the index provider’s website for complete details on the index this portfolio seeks to track. A link to a fact sheet compiled by the index provider for the index this portfolio tracks is provided above. A decision to invest in this portfolio should not be made in reliance on the information in this fact sheet.

All graph data is as of the end of day for the referenced period, unless otherwise specified. The investment minimum is the minimum investment required to invest in a particular portfolio. The minimum amount is determined by IBKR Asset Management, based on the characteristics of the underlying portfolio. It should not be considered as specific investment advice for your investment situation.

The actual performance chart is provided for informational purposes only, and should not be used as the basis for making an investment decision. We rely on mathematical formulas, computer programs, and pricing information from third-party vendors to provide these returns. Neither IBKR Asset Management nor any of its data or content providers shall be liable for any errors in this information or any actions taken by you in reliance upon this information.

Benchmark returns displayed have been calculated by IBKR Asset Management using daily adjusted close prices and include dividend income. More information can be found here. IBKR Asset Management uses only investable ETFs as benchmarks. Investable ETF returns reflect the deduction of (i.e., are net of) management fees, transaction costs and expenses.

Transaction history is available upon request. Portfolio classifications are provided by IBKR Asset Management, and are intended to serve as a general guide.

Not all transactions listed on this page or underlying the performance information displayed on this page will appear in accounts due to IBKR Asset Management's trading rules and individual client constraints. Eligibility of these securities is monitored periodically, and may change over time. Actual client investment holdings may vary.

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